NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Operational Aspects of Investment Management
Under the SEBI (Investment Advisers) Regulations, how long must an investment adviser generally maintain records of its advice, client agreements and related documents?
An investment adviser must keep its records, such as agreements, risk profiling documents and advice given, for at least five years. This allows SEBI and auditors to inspect and verify suitability and compliance, so shorter retention periods are incorrect.
- AAt least five yearsCorrect
- BOne year
- CUntil the client's next review
- DThree months
Explanation
Registered investment advisers must preserve records, including client agreements, risk profiles, suitability records and advice rendered, for a minimum of five years. Shorter periods would not meet regulatory inspection requirements.
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